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0X

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Efficiency with one public good, one private good: General ... A risk-averse individual insures. 0. MC=AC. P, C. X. Moral Hazard. D. P. Xo. Xins. co-payment ... – PowerPoint PPT presentation

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Title: 0X


1
Technical efficiency
26X
0Y
K
17X
10X
5X
8Y
14Y
0X
L
23Y
31Y
2
Y
Exchange and top-level efficiency
P
0B
iA2
Y
iA1
iB1
0
X
X
P
A
iB2
3
The Utility Possibility Frontier
UB
UA
4
Y (private)
Efficiency with one public good, one private
good General Equilm
P
Yo
YB
i1B
0
X
P
Y
YA
iA
0
X (public good)
C
Xo
C
5
The Utility Possibility Frontier
UB
i1B
UA
iA
6
Public good, partial equilibrium
P, C
?DV
MCAC
DA
DB
X
0
Xe
Xo
7
Public good, large numbers case (Olson-Zeckhauser)
P, C
DH
?DV
DL
MCAC
X
Xo
Xe
0
1000
1010
10
20
30
40
8
Lindahl / benefit taxes
P, C
?DV
MCAC
tA
tB
DA
DB
X
0
Xo
9
P, C
J
A commodity tax
K
pt
MCt
t
L
MCAC
p0
M
D
X (private)
0
Xt
X0
10
P, C
The tax limit
Pt
t
MCAC
p0
MR
D
X (private)
0
Xt
X0
11
Marginal Excess Burden
MEB
T
0
TL
12
Efficiency for a public good, including the
costs of taxation
P, C
?DV
MCMEB
MCAC
X (public)
0
Xo
13
UB
Downs political competition
R
S
Q
UPF with public goods
UPF without public goods
UA
14
P, C
Tullock Access roads
Dcoalition
MCAC
Road maintenance
0
XG
Xe
15
P, C
Tullock Access roads with general taxation rule
Dcoalition
MCAC
1/2 MC
Road maintenance
0
XG
Xe
XG
16
Buchanans Economics of Socialism
P, C
?DV
DB
2MC2AC
DA
tB
p0
MCAC
tA
X (private)
0
Xequal
XAe
XBe
17
Brennan and Buchanan Leviathan
P, C
?DV
MCMEB
MCAC
0
X (public)
XG
Xo
18
Niskanen bureaucracy
P, C
?DV
MC
MCAC
0
X (public)
XG
Xo
19
P, C
Rent-seeking (Tullock, Krueger, Bhagwati)
Pm
MCAC
p0
MR
D
X
0
Xm
X0
20
A risk-averse individual insures
Utility
U(Y)
Uins
E(U)
50
46
10
Income
Premium
21
P, C
Moral Hazard
D
D
D
P
MCAC
co-payment
X
0
Xo
Xins
22
P, C
DP
Pollution fixed proportions
?DV
MSC
tax
MPCAPC
Bricks
0
Bo
Be
tax
DS
23
Pollution Variable proportions
MIB, MEC
MIB
MEC
tax
NMIB
Waste
0
Wo
We
24
Alternative shape for UPC (utility
interdependence)
UB
UA
25
P, C
Redistribution as a public good
DH
?DV
DL
1
Income Transfers
Xo
Xe
0
26
Specific commodity utility interdependence
P, C
?DV
DP
DS
MCAC
sub.
sub.
housing
0
Ho
He
27
The tax limit broad vs. narrow
P, C
Pt(B)
Pt(N)
MCAC
p0
DB
MRB
MRN
DN
X
0
Xt (N)
X0 (B)
Xt (B)
X0 (N)
28
Excess burden elasticity
P, C
pt
MCAC
p0
DE
DI
X
0
Xt (I)
Xt (E)
X0
29
P, C
The tax limit
Pt
t
MCAC
p0
MR
D
X (private)
0
Xt
X0
30
Y
Comprehensive vs narrow-based taxation
R/Py
A
C
i1
B
iC
iN
X
0
R/Px
T
31
Leisure
work incentives
24 h
A
D
C
i1
B
iL
All other goods
iY,C
iP
0
T
32
Differing labour supply responses
wage
SI
SE
D
t
Work
0
Ht
H0
33
Future Consumption
Taxation and saving wage 100, r 5
105
94.5
94.05
Present consumption
0
90
100
34
VA
price
10 tax
Price
Remit 10
Raw material business
10
100
110
100
Remit 10
manufacturer
100
20
(credit 10)
200
220
Remit 10
30
retailer
100
(credit 20
330
300
consumer
Total tax 30
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